Identify which of the following examples reflects a way Adam
Smith thought the government should be involved in the
economy. (1 point)
The government decides to let businesses set new
policies about international trade.
The government builds a road from a city to a major
seaport and charges a fee for cars to drive on that road.
The government decides to limit how many flowers any
individual person can buy because supply is limited.
The government decides to prohibit box companies from
selling their boxes to another country overseas.
The government builds a road from a city to a major seaport and charges a fee for cars to drive on that road.
To identify which example reflects a way Adam Smith thought the government should be involved in the economy, we need to understand Adam Smith's philosophy and principles. Adam Smith was a proponent of laissez-faire economics, which advocates for minimal government intervention in the economy.
1. The government decides to let businesses set new policies about international trade.
This example does not reflect Adam Smith's ideology. Adam Smith believed that governments should not intervene in international trade and instead advocated for free trade between nations.
2. The government builds a road from a city to a major seaport and charges a fee for cars to drive on that road.
This example also does not align with Adam Smith's principles. Adam Smith believed that the government's role should be limited to providing essential public goods such as defense, infrastructure, and the rule of law. Charging a fee for using a road would be seen as government interference in the free market.
3. The government decides to limit how many flowers any individual person can buy because supply is limited.
This example does not reflect Adam Smith's viewpoint. Adam Smith believed in the power of market forces to determine supply and demand. Limiting the quantity of flowers an individual can buy goes against the concept of a free market.
4. The government decides to prohibit box companies from selling their boxes to another country overseas.
This example is the closest to reflecting Adam Smith's perspective. Adam Smith believed that the government may need to regulate or restrict certain economic activities in cases where it could harm the economy or national interest. Prohibiting box companies from selling their boxes to another country can be seen as a form of protecting domestic industries or safeguarding national resources.
Therefore, the example that reflects a way Adam Smith thought the government should be involved in the economy is "The government decides to prohibit box companies from selling their boxes to another country overseas."
The example that reflects a way Adam Smith thought the government should be involved in the economy is:
The government builds a road from a city to a major seaport and charges a fee for cars to drive on that road.